tv MONEY With Melissa Francis FOX Business September 13, 2013 5:00pm-6:01pm EDT
restaurants. creative. david: i don't like it. next we will be watching the fed. meanwhile it is all about melissa. ♪ leyna. melissa: i'm melissa francis, and here is what is "money" tonight. north korea has ex with u.s. and russia talks. following the money to north korea, and it is a dangerous connection with the crisis and syria. our franchise owners some reveal how to keep them happy. and who made "money" today. investment stores. stay tuned and find that two ways. even when they say it is not, it is always about "money." ♪
melissa: as the week wraps up, the tide could be turning the deadly conflict in syria. we start in geneva. the secretary of state meeting with the russian foreign minister for the second day of peace talks working toward a potential treaty that could finally give some peace to war-torn syria. fox news is live where the negotiations are taking place. what is the latest? >> good evening. we are traveling whistle and and they say that after two days of talks their is a real opporunity to move forward toward the dismantling of the syrian chemical weapons arsenal. earlier the secretary of state and russian foreign minister met jointly the u.n. and arab league envoy on this serious civil war. after word of parties pledged to work toward holding a second
peace conference be read if it happens it would be called geneva to, as the first was also held here 15 months ago. secretary of state carry made clear that effort is secondary. >> we both agreed to do that home work and meet again in new york around the time of the u.s. and german -- general assembly in order to see if it is possible to find a date for that conference and me, much of which will obviously depend upon the capacity to have success here in the next day, and our, days on the subject of chemical weapons. >> than a famously assertive character who has delivered a sharp jabs to at least the last three secretaries of state, even this reporter. yesterday he rebuked the
secretary for delivering an extended political statement. today they say that two are able to talk straight to each other but are spending a lot of time 1-on-1. melissa: all right. unfortunately we lost the audio, but we got most of the report. how the u.s. is handling the situation is no laughing matter. the exchange between president obama and secretary of state's kerry now being compared to that of laurel and hardy. what is the cost been? let's ask wall street editor dan manager. want to get to the cost of this. why did you make the connection? >> because of the bumbling in him that had taken place over the last two weeks. you know, the red line that turned out not to be a red line. the secretary of state saying that this act by the united states would be unbelievably small and then blurted out that
perhaps if assad got rid of this chemical weapons perhaps some of this what happened. immediately the russians seized on that and here we are trying to pursue the dismantling of the syrian chemical weapons, a process that anyone who is in the chemical weapons business will tell you is extraordinarily complex and time-consuming. the secretary of state was saying days, hours, days. no, years to get a job like this done. melissa: absolutely. it has to be done by military folks. cannot be done by civilians. it is complicated. they must be armed. building silos. >> and this is in the middle of a warm. plus, the "wall street journal" reported something called unit 450 syrian special forces have disbursed chemical weapons to 50 different sites. the idea that assad will release
them all is, i think, a pipe dream. i find this a very embarrassing process. melissa: and the meantime we want to look to the cost of all of this. one cause that i see right away, the taliban and launching an attack against the u.s. consulates in afghanistan today and you wonder if they're is a sense of the u.s. being compromised and being weekend and our enemies taking advantage of that. what is our long-term cost of defending? do you make a connection? >> i think it is not too much of elite in the long term future. short term, yes. i think our enemies are seeing that the united states is not willing to use all of its assets . we now have a diplomatic asset being worked, but unless we're willing to use our military assets, and the past two weeks suggest we are not, then that tall man with the north koreans or the chinese will decide that they can step forward a little bit more. the reason we used those military assets is to prevent that from happening and as for
having to get into a crises which will be extremely costly. this is not costly. you get how much debt we have, problems here,. melissa: how do you respond? >> i am afraid someone has to. we are the number one power in the world. that does not mean we run around policing every skirmish. there are moments where the united states has to push back. the u.s. institute just today reported that on august 31st they believe the north koreans restarted their plutonium reactor blew. melissa: absolutely. we will be talking about that in the next segment. >> and the south koreans are going to be very nervous about this. something were to happen in the korean peninsula, no way the united states does not get involved. we do not sit in washington and
say that is not our fight. melissa: there is a human soul and the financial cost of something like that we are watching these actions encouraging other actions the. >> exactly. the police function is to prevent and suppress that sorting. melissa: thank you for coming on. >> good to be with you. melissa: appreciate your time. it is fair to say that a lot of americans are questioning how the u.s. handling -- how the u.s. is handling the syrian crisis. tom sullivan has something to add. >> we both said something that we regret. the president painted himself into a corner, and i am thinking he wishes he did not say that. regardless, the killings of this serious civil war are horrible, so are the humanitarian disasters. %-much is this costing us?ow i am sure some pentagon accountant will allocate a few billion to the syrian issue. however, in reality we have not hired any additional sailors and
airmen. the navy will still be sailing ships. air force planes would have been on some mission anyway. the biggest cost is the egg on the face of the president, but these attempts will eventually have begun people say it costs american prestige. i don't think so. everyone knows we are still big and powerful. for now the world does mock us because as the secretary of state says, we won't use our power except in an unbelievably small way. compare that to win our hostages are released the day of ronald reagan's inauguration. we just need to once again find someone who knows what they are doing, and that the world respects. melissa: be sure to watch the tom sullivan show this weekend. you can catch it on saturday and sunday right here. up next, it is the "money" connection you will not hear about anywhere else. has the debacle turned into rescue of obscenity that should have everyone very worried?
plus, there is no way they like the way that this looks. you have to hear what this ceo is blaming it all on. although word on wall street. the inside scoop coming up. more "money" straight ahead. ♪ thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create theuture... by clinging to the past. and with that: you're history instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it.
♪ melissa: well, the world's attention has been focused on syria, north korea is seeing an average city depends. a critical partner and ally of the assad regime and now may be restarting plutonium production to develop nuclear weapons. joining us to follow the "money" and the developing threat. he joins me now. people are pointing to the satellite images, steam coming about korea's nuclear facility. >> basically what they want to do is restart the reactor which has been dormant since it does a seven. that is an effort to weapons. they can put in their own arsenal and sell it. north korea.
melissa: that is one of the things is we are following the "money" that is terrifying. you say that they are one of the suppliers of these chemical weapons that we're talking about right now. supplied by north korea or could have been. >> absolutely. they sold complete chemical factories. they provide equipment, provide services like fashioning warheads and also provide north korean military officers in the front lines of the civil war presumably directing the use of the chemical weapons. melissa: this is really terrifying. we have to step in and keep an eye and austria. now as we're having this problem that could be supplying nuclear weapons. >> well, they did. the israeli strike in september september 2007, we destroy their
reactor. and there were probably north korean technicians there. guess what, the iranians are thought to have paid for the reactor because the syrians don't have the money. here we have this triangle. syria, iran, north korea, and then the background is china. melissa: absolutely. you get right to my next question. where would they get the money from all of this? >> basically that was paid for. north korea has also had help from china pretty difficult to do that over the waters. rescinded by airmail across chinese aerospace. so there are all sorts of problems. china is in the background. these are just sort of the pauses. melissa: i have to imagine, part of this is his ticket to us and
everyone else. is there a way to choke off the money? >> eventually it would. first of all, there 18. also, the chemical and biological arsenals. as they say, they sell these things. we have not been doing enough to stop it. we just marked the 12th anniversary of september 11th, and if we want to prevent another very bad day when need to start paying attention to the north koreans. melissa: paying attention and doing what? if you look at what has happened elsewhere, obviously in our failed policies, what do you think would be the best policy in order to get them to stop? is it about money, force? >> it is certainly about money. we should be preventing the south koreans from all of these joint project with supply north korea with a pretty substantial part of their gdp. also, we should be stopping north korean traders on the high seas. they sell weapons and by them.
we can stop them because we have the right to do that. there are a number of these things where we need to constrict the north korean regime, do a better job of cutting them off in the global financial system mantling china that they have to get out of the picture because the north koreans can do this forever if the chinese to support them. melissa: to a better job. they seem like they are fairly isolated right now. >> well, there are isolated to a relative extent, but they have been able to use chinese banks, continued to do that after they're work cut off from the bush administration. they have north korean diplomats ferrying cash around and their suitcase which is an example of how well we have done some things, but they found new routes into the global financial system since then. melissa: it makes it feel like all the rest of the things we have talked about. a lost cause. >> not if we pay attention. the north koreans, one of the weakest states on earth. we are the most powerful nation in history, but we have not been paying attention. have been plae
pretty bad policies of looking to their best friends, the chinese, to help us. they have been playing yes, not the north koreans. melissa: the number one thing that we should do. what would you suggest? >> the most important thing is to prevent them from selling this around the world which means stopping every north korean freighter and telling the chinese that they have to cut off the air space. at think we nned to use economic coverage -- leverage. this threatens the united states in a very direct way. melissa: thank you so much. so much great insight. next on "money," after giving george zimmer the boot commands warehouse is taking a turn for the worse. wait until you hear what the ceo is blaming it on. it's really something. we have the details. plus, it is the best day of the week. franchise friday. the toughest challenge yet. how did you decide what to pay your employees? it can make a break your success . back to tell you how to get it
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♪ melissa: whispers, rivers, behind-the-scenes stories. we have it all right here. friday the 13th, in case you forgot. men's wear house has been stuck in a nightmare of trouble for the last few months. the founder, what has really got people talking today are the ridiculous reasons why the company is suddenly failing. it is now blaming someone.
you cannot make this stuff up. all the word on wall street. here with the inside scoop, james freeman. this is -- i mean, i don't want to laugh at that. but when you have your ceo go on a conference call and say, historically we have seen the american anomalies in the calendar of veteran brides use their wedding days. we believe that the number 13, the whole year is causing a small but meaningful number of brides to avoid getting married. when a woman wants to get married they're not going to lock the whole year. this year. this entire year is gone. >> not inspiring a lot of confidence. you think this guy is making excuses. they lowered guidance going forward. you find out that it's pretty much the same number of marriages this year as 2012. in new york is even going a
little. this is not something that makes you want to run out. melissa: i could see not wanting to get married today on friday the third -- friday the 13th unless you're brave. and the people who wanted to get married on seven / seven / 11. to say you will skips the entire year promote what was the response? online, it's sort of let out. >> and it is not -- the excuse obviously following the bad earnings report. you have a company where for 20 years basically investors did very well with george at the controls. and of a falling out. it's hard to believe in the first quarter after the founder leaves the sales get affected by that. melissa: was it already going downhill? this is a lie -- the reason he
sold the company. they still want to be in control. in not going to be in control. >> this is not the rumors states. people have talked about maybe he wants to do a buyout and take control of the firm. tough to pull off because he only owns about three and a half%. i don't think he would be thinking about that if he thought this was a sinking ship. clearly he was -- it seems that he was rejected. he was not seeking to leave. melissa: was that a personality thing? >> it's really odd because the this is essentially his hand-picked successor who is now ceo. you could say -- a lot of people have trouble letting go. sixty-four years old. he is not old. i would say if i am an investor, he probably still has his fastball. i would like to see him involved melissa: at least the ads that we saw forever. and it was of little cheesy.
you laughed. he snickered, but it sold clothing. >> and it told you that you're going to get a decent suit at a price. you're going to get a reasonable deal. >> the old bat where he is talking in doing his thing. let me show you the new one. we have that ready to go. this is it. this is like the guy walking down the street. walking through time. kind of telling you, you know, you knew what era it was by hallie masood was. here is the problem. when they get to the and, i cannot tell what today was supposed to be. it's all fashion. what was today? no, that was it. that was the big crescendo. >> i did not. i felt like he was speaking to a much more narrow audience which i think could be talking to anyone who needs the suit. whereas this, talking to young single guys, maybe on the cheesy
sides. and i think it makes sense, they do a big business renting tuxedos for proms and events, kids and their late teens and 20's. obviously young people are a big part of the market, but this seems to be to me writing off people who are over 30 because it just does not seem to speak to them. melissa: and even when you see the guy at the end, he is not looking for a job something. i don't know what he was doing. but he was not going to up, either. this kind of did not release it to anyone that it was supposed to be. interesting. so he might come in and try and do a michael dell. >> that is pure speculation. i think if you are stockholder you have to wonder. i get one free. melissa: thank you so much.
you know what day it is. it is franchise friday. answering the biggest question yet. how did you decide what to pay your employees or franchise owners? walk us through one of the biggest challenges you will face. plus, who made "money" today? peggy knapp more cash than they have been five years. that answer coming up. piles of "money" coming up on this franchise friday. ♪ copd makes it hard to breathe...
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get a pad and pencil because today it is all about how to know what to pay your employees. this is a huge national conversation. you have got to know what to do with wages. let's welcome back or franchise family. just opened his second subway. working on opening her first time and see. made the move from nfl football. when i you going to open that? want to give my real cheese and tomato. >> going back and forth. believe it or not, it is not too far out. melissa: where on tv time. >> still trying to us draw business.
melissa: you're big on those. to create another segment of that business. >> okay. melissa: us talk about how you decide to pay your employees. what is the basis of that decision. is it just minimum wage? >> not really. unfortunately you have got to a -- well, depending upon how you look at it, you have to pay a person but there worth. a different minimum-wage. in washington d.c. it is $1 more than it is nationally. know your location and then take a look at who you're talking to and what kind experience they have. also communicating with other franchisees'. what kind of parameters really been a freeze position. you don't want to get into a bidding war, but he also don't want to lowball people because they will perform to the highest level. melissa: the walk into another place and say, what do you pay your people?
>> yes. melissa: really? >> she talked to the employees. but you will not do that to the other franchisee in the system. melissa: you runover. >> we don't talk about those guys. melissa: ipod is the best. you go to another lowbrow place. >> yes. melissa: terrible and inferior. >> the kind of person. so you're always looking for that personality, whether someone at the grocery store, check out cantor, another location, another restaurant, someone who offers great customer service. i'm sure there treating you well, but you're looking for something else. melissa: to the ever think you're picking them up? >> if they do i pull up my phone and say, it's my wife. melissa: they know i'm serious. i'm looking for a good employee. >> that's exactly right. melissa: how the figure out. >> something similar. the demographics.
food handlers lessons. melissa: have you even know where to start. that's completely up to the individual franchisee. there's a system we have where people can apply online. can use that tool and channel the local people the work in our stores. melissa: is there a compelling argument that people give you? >> you can say well, i do this, this, and this. melissa: study you decide? >> i work with the honor and get the employees going. and then it depends upon the expertise to my knowledge,
motivation, what they're capable of doing. the tricky situation. melissa: this is a huge conversation going on in america where you see -- does it or you when you see these demonstrations calling on all across the country where they show people out front of mcdonald's demanding 15 bucks an hour? does it make you nervous about your own employees are do you think it is ridiculous? >> it makes me nervous because people have to understand there is a balance. i am all for a living wage and paying people with their worth in terms of their still said. but it cannot get to a point where being a business owner because -- becomes cost prohibitive because jobs would go away. maybe the income per hour may go up but what happens is to serve cutting back employee hours. melissa: isn't that what you do immediately? the economy goes up. word is that money come from?
word is that money come from? >> that's my problem. pass it on to my customer. they're not trying to be very happy. minimum-wage needs to be minimal to maybe even give an incentive for people to want to aspire to be more. a minimum-wage workers are young people. i do not think it should be a number where they can feel comfortable. it should be an incentive to want to do more. melissa: that is an interesting point. what you think? where does the money come from? these are single moms trying to support their family. when the look of the bureau of labor statistics 305, what do you see? if you have to raise that, where does it come from for you personally? >> i don't think it has to be too much. just talking about catering, and
delivery business. take-out. grow yourself, try to find out where you can get more foot traffic to your board. melissa: you're saying you try to generate more revenue and could do more business and pay for higher wages. what you do that right now? >> we are. melissa: to you pay your people more than minimum wage? >> i do personally. i cannot speak for every franchisee. melissa: what do you take from us? >> personally it infuriates me sometimes because people complaining about what they are making, go out and get another job. i worked two jobs when alexander to make what i became of myself. you have to put your foot forward and really think of what you want. go get another job. melissa: that is the -- that is very blunt and honest. a lot of people online, people don't have the nerve to say that
on tv a lot. >> i just want to make the point that we are having the right conversation. needs to be addressed. there is a balance. both people, both sides -- we need to understand that there is a balance. $15 per hour. is not realistic, but a cut the conversation started. what is going on in california -- melissa: and let you brought that up. raise the minimum wage, $10 by 2016. right away, what would you do? "would you do to manage your business if you were told you had to kick away jeff? come back until you figure out where the money would come from? >> i would have to look my numbers and see what kind of impact this will have on the bottom-line. i would put pressure on my managers to find ways to cut costs, to find ways. again, i believe that this is a people business. motivated because they feel like they are working for their pay.
you're going to have problems anyway. melissa: go ahead, last word. >> tried to air grow yourself. firstname.lastname@example.org tight. melissa: thank you. i love franchise -- "franchise friday." great team. twitter is ready to fly on to the south market stage. thinking of buying in? we have the numbers that every investor needs to a crunch. at the end of the day it is all about "money" and "franchise friday." good job, guys. ♪
thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. if you've got it, you know how hard it can be to breathe and man, you know how that feels. copd includes emphysema and chronic bronchitis. spiriva is a once-daily inhaled copd maintenance treatment that helps open my obstructed airways for a full 24 hours. you know, spiriva helps me breathe easier.
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and has they stated the nafta, investors' worries? here with his own take is our very own dennis kneele. >> a pretty exciting story. the company is betting that the stain that investors felt, $38, it went down as low as 18. i thought of buying at ten. of course not. now it is back up 20% so. along comes twitter to say we are ready. yet it learned lessons that facebook did not. it learns to go small. size matters, and small is better. facebook wanted to go public with $100 billion. twitter comes out best estimate may be 15. some of these numbers, we have to look at what it was like for facebook right before ipo, some of the numbers and what it was like. melissa: a lot smaller. the initial evaluation.
>> 100 billion. fifteen for twitter. let's get the users. if you evaluate per user twitter is much cheaper. but now what about revenue? now, facebook revenue is massive baby over three and a half billion. that is over $4 per user. maybe $3. so 31% lower revenue, but 36% cheaper price. maybe they are better by. melissa: youssef are going cheaper, but i wonder if it is more of a function that they are jumping the gun. the market is about as good as it can get. >> to want to get in before. >> that is an interesting point. i was thinking that they go public in 2014, not before year-end. but you get past syria, get past the fed, bernanke transition to my past the continuing
resolution and the shutdown in government. melissa: that's all fine. >> they have other hurdles that facebook did not. and facebook had annual revenue of almost 4 billion when it went public, profit of a billion. this company has maybe 600. it only just began doing advertising. they face a one big opponent that facebook did not have. facebook, let's think about it. the social network, no one had even come close to a billion users. along comes twitter and it has histogram. facebook bought it for a billion dollars. it has no revenue. 150 million users and growing fast. they can cast twitter. those two services are very much alike, instragram more picture-based, twitter more work-based, but americans like pictures more than words. melissa: they do, but it seems like i would argue the other
side. twitter has some much more momentum. facebook, there is facebook fatigue. >> they waited too long to go public. melissa: is everyone who is on it is on it. with twittew people discovering it. not only that, they are becoming more and more legitimate. you see more -- uc police stations and fire, mayors, officials, peoplehood releasing statements on twitter. the sec. >> it may just be of very valid business. the whole thing that set facebook on fire was teenager's and the very young. then they see that mommy's on this side and start fleeing into a instragram. the more legit it is, the more you could lose. as those guys go to ed instragram.
melissa: that is true, but it still means that facebook peaked before it came out. maybe that is why we side price where it was. we saw it sank. all this time to get back to the initial. >> but you're talking a short time frame. let's go back. went public at $87. a huge value. and now look. a longer term. what i would do is when they go public i don't have the courage to just buy it right away. i now want to see what happened ted facebook happen to twitter. i think you step back and hold off. i waited. that did not buy. now it's something like 45 per something. now you feel like you missed out. you have to wait in the command. melissa: there you go. up next, modernizing this america. had he seen the body art on ms. gans is?
this cancer is who is boldly walking the ms. america stage in a way that no contestant ever has. take a look get this for yourself. the serenity prayer. pretty brave of her in this environment. the 22 year-old says she was to be yourself a break down stereotypes. a few fun facts. a military sergeant, always with a bow and arrow, an opera singer , majoring in chemistry and chinese. what did you guys think of this? >> well, the pageant, i am not a fan. however, this is a move and the right direction point. melissa: i was like, what is this all about. when i read more about her biography i thought, this is an interesting marketing and money move for the pageant because i think one of the things that
irritates women is that it is so old-fashioned. that is where you always here. they're stuck in another era, casting women in this light demand even when they try to be moderate it is always pitiful, and she is saying that there are a lot of people that have the opportunity cover-up their tattoos. she said, no. i'm going to do this. all of this. getting her pilot's license. she is truly a different type of woman and shelling this. you have had a lot of time to think about this. delayed and give it a thought. >> well, i will say that i don't hate pageants like my colleague. my dna forces me to like it. but i will say, i love their versatility. she obviously is get that many different things. i appreciate that. for me the tattoo is a little much. melissa: but from a marketing perspective because you are a
businessman. if your brand is the pageant, would you say that it detracts from it because it is supposed to be clean, wholesome, sort of old-fashioned traditional beauty or would you say that this brings interest and enhances its? >> i'm loving it. because i think he will open yourself up to a segment that ignores the pageant. i think there will be ed segment of the population it things, that is a real person. a real, modern woman who is not just sitting there powdering her face and doing nothing. she is getting out and doing things and she is still feminine pretty. melissa: if you have a modern woman who suddenly wants to be a part of it and is interested, does it bring in a new audience? >> very positive marketing alliance. a big story today in the new york post on page six where allegedly ms. new york was saying nasty things. melissa: and very catty, which is the image you normally associate with pageants which is a turnoff, even -- same old
thing. when fighting with each other and here is this one who is totally different. >> it becomes the rule rather than the exception. melissa: will you watch? >> no. depressing feeling. >> i'm going to watch it. i meant to do everyone a favor. al watch for everybody. melissa: i love your honesty. thank you so much. thank you for joining me. up next, have made "money" today? they will need to double back all of the cash they just made. you can never have too much "money." i like that. ♪ you make a great team.
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